Demo Account Affecting you Negatively?
Demo accounts are extremely helpful in many cases, but for someone who is starting off it can be a double edged sword. For a start I must clarify that for any trader a Demo account is a MUST. There’s no trading without some practice, or even a lot of practice. But there are ways where your Demo account is a trap and preventing you from moving ahead.
A Demo account is like riding a bike with training wheels, it is fun, easy and highly encouraging but once the training wheels come off, it is more dangerous, risky and less fun until you really learn how to ride.
While trading on a demo account you are desensitized to emotions and have all the freedom in the world to lose opportunities lose trades and so on. It can be very easy and fun, making some profits then losing them only to make more profits without ever losing any money. You are not at risk you are enjoying it and you are not worried. Once you’ve thrown in your money the process will become much harder to control. It’s the difference between playing a poker game with candies as money, and playing it for real money.
Al though it is a great place to slowly understand trading, and find your place as a trader, it is hard to really learn yourself until you get a real account. That is when you will test yourself under stress and emotion, you will see what you are most comfortable with, your preferable trading hours etc.
The key to a Demo account is to know when it’s time to go live. Not a day too soon or a day too late. If you hurry and throw yourself into the real world of trading when you’re not ready you are guaranteeing big losses, but if you get too used to the comfort of a demo account you’ll never get started.